Manzar Naqvi
KARACHI: Suzuki Motor Corporation has decided to acquire land in India’s Gujarat state for the establishment of a new automobile production plant, marking another major step in expanding its manufacturing footprint in the country. The decision will be implemented through its Indian subsidiary, Maruti Suzuki India Limited, which has finalized plans to acquire land from the Government of Gujarat for the new facility to be constructed in Sanand.
Earlier, in January 2024, Maruti Suzuki had reached a basic agreement with the Gujarat government regarding the construction of a second automobile production plant in the state. The latest decision formalizes the land acquisition process and advances preparations for the project, which is aimed at supporting future growth in both the domestic and export markets.
Gujarat has emerged as a preferred destination for large-scale automobile investments due to its well-developed supply chain and robust infrastructure. Its proximity to major ports provides significant logistical advantages, making it an ideal production base not only for the Indian market but also for exports of complete vehicles. Sanand, in particular, offers strong connectivity through highways and railway networks, further strengthening its appeal as a manufacturing hub.
The new plant in Sanand will be spread over an area of approximately seven million square meters, or about 1,750 acres, and will have a planned production capacity of one million vehicles per year. The cost of land acquisition and related expenses is estimated at around 49.6 billion Indian rupees. Once operational, the facility will significantly enhance Maruti Suzuki’s overall manufacturing capacity in India.
With this expansion, Suzuki aims to steadily increase production capacity in anticipation of long-term growth in India’s automobile market, while also scaling up exports from the country. The investment aligns with India’s “Make in India” initiative and underscores Suzuki’s commitment to strengthening local manufacturing and contributing to industrial development.
At present, Maruti Suzuki operates multiple automobile production plants across India. These include the Gurugram plant in Haryana, operational since 1983 with a production capacity of 700,000 units per year; the Manesar plant in Haryana, operational since 2006 with a capacity of 900,000 units; the Hansalpur plant in Gujarat, operational since 2017 with a capacity of 750,000 units; and the Kharkhoda plant in Haryana, which is expected to begin operations in 2025 with an initial capacity of 250,000 units. Together, these facilities form the backbone of Maruti Suzuki’s manufacturing network, which will be further strengthened by the addition of the new Sanand plant.
